"Monetary policy errors can destroy the economy – but that doesn’t mean clever monetary policy can create a boom. Bad monetary policy is disastrous – but good monetary policy is neutral. It doesn’t mess things up. It allows the private sector to do its thing. QE is not like alchemy. It can’t cure an economy which is suffering from real ailments, such as excessive debt, bad skills, too much regulation, bad incentives and the like. These problems require real medicine, not a bit more money printing."